Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 06/01/2002, Docket: RP00-536-001, Status: Effective

First Revised Sheet No. 215 First Revised Sheet No. 215 : Effective

Superseding: Original Sheet No. 215

GENERAL TERMS AND CONDITIONS

(Continued)

30.2 a. Penalty Revenues and/or Cash-Out Differentials will be

returned to Shippers on or before March 31 of the

calendar year following collection.

b. Shippers will not be eligible to receive a portion of

the Penalty Revenues and/or Cash-Out Differentials for

a month(s) where they are cashed out or penalized.

c. VGS will calculate a Shipper's allocation of the

Penalty Revenues and/or Cash-Out Differential using

the Shipper's actual accumulated throughput in the

months that a Shipper was eligible, as a percentage of

the total eligible accumulated throughput of all

Shippers for the calendar year.